Subject: File No. S7-16-98
Date: 8/14/98 4:24 PM
RE: Subject - Proposed SEC Rule 102(e)(1)(ii) which would allow the SEC to
bar from practice before the SEC a person who engages in "improper
professional conduct," and which would subject accountants, whether in
industry or public practice, to discipline by the SEC for simple errors in
judgment.
Dear Mr. Jonathan G. Katz, Secretary, SEC:
I am a CPA. I currently am the Controller for a private company which
may go public. I previously was the Controller and Chief Accounting
Officer for a Fortune 500 SEC Registrant.
I very much object to the proposed rule. I believe that any
professional (accountant or attorney) should be subject to consequences for
gross negligence; which consequences could include up to disbarment from
practice before the SEC.
HOWEVER, allowing the SEC to disbar a professional for an error in
judgment (which constitutes ordinary negligence), is too strong of a
position for the SEC or any governmental authority to hold. Rather, the
error in judgment should be publicly disclosed and corrected in an
appropriate filing by the Registrant.
Does my opinion have reasonable logic to you? Please advise. Thank
you.
Sincerely,
Steward, Inc.
R. Steele Jones
Controller